Dexter Company applies the direct write-off method in accounting for uncollectible accounts. March 11 Dexter determines that it cannot collect $8,300 of its accounts receivable from its customer Leer Company. 29 Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above selected transactions of Dexter.

The journal entries are as follows:

(a) On March 11,

Bad debt expense A/c $8,300

       To accounts  receivable    $8,300

(To record the uncollectible accounts receivable)

(ii) On March 29,

Accounts  receivable A/c Dr. $8,300

      To Bad debt expense A/c          $8,300

(To record the reversal of written off account receivable)

(iii) On March 29,

Cash A/c Dr. $8,300

    To accounts receivable  $8,300

(To record the receipt of cash from the customer)

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